Kia Corp has reached a tentative wage agreement with its South Korean labour union, the automaker said on Tuesday after the union had suspended a plan to strike last week.
“There was a consensus between the union and the management as we are now seeing uncertainties, such as instability in the Middle East and Ukraine, continuing high interest rates, trade barriers such as the Inflation Reduction Act, as well as a significant drop in vehicle demand compared to what we saw during the pandemic,” Kia said in a statement.
Under the agreement, Kia will increase workers’ basic monthly pay by 111,000 won ($82) and give a one-off bonus payment to each worker as well as performance-based benefits.
Kia said the deal is subject to a vote by union members on Oct. 20.
Reuters
